...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...2013 www.iiste.org Drivers of Supply Chain Performance Enhancing Organizational Output: An Exploratory Study for Manufacturing Sector Irum Shahzadi, Saba Amin, Kashif Mahmood Chaudhary* President GCUF Toba Tek Singh Group Department of Business Administration, Government College University Faisalabad, Pakistan * Tel: +923016517083, E-mail: kashifmahmood5970@yahoo.com, www.km5970.webs.com Abstract Purpose - The Purpose of this study is to explore the drivers of supply chain performance and give a framework that how organizations can manage these drivers for their survival. This paper is written especially for the students of business management to enhance their knowledge about supply chain practices. Methodology - The paper contains qualitative approach. In first phase the authors reviewed literature about the drivers of supply chain performance. In second phase the data from internationally published articles were collected and suggest a framework to manage the drivers of supply chain performance. Findings - The whole study concluded that there are six drivers of supply chain performance in literature that need to be managed to enhance organizational performance. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing. These drivers are closely related with each other and have a greater impact on organizational performance. Organizations need to find a situation where both efficiency and responsiveness in supply chain practices are at average...
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...(profitability). SC=customer value -SC cost SC Decision phases: 1 - SC Strategy (design)– how to structure the supply chain over the next several years. EX: in-house or outsourcing, location and capacities of production and warehouses, products to be manufactured or sored, modes of transportation and type of info system to be utilized. 2 – SC Planning – time frame is a quarter to a year. The goal here is to maximize SC surplus that can be generated over the panning horizon given the constrains established during the strategic phase. Includes decision about which MKT will be supplied from each location, subcontracting g of manufacturing, inventory policies time and size of marketing and price promotions. 3 – SC Operation – time horizon is weekly or daily. Decisions regarding individual customer orders. SC config. here is fixed and planning policies are already defined. The goal is to handle incoming customer orders in the best way. Allocation of inventory or production to individual orders, set dates when an order is to be filled, generate pick lists at a warehouse, allocate an order to a shipping mode and shipment, set delivery schedule of trucks and place replenishment orders. Less uncertainty about demand info. (short term). Process views of a SC: 1 - Cycle view – processes are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain. Procurement cycle (suppliers to manuf.) – Manufacturing cycle (manufacturer to dist.), replenishment...
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...A critical analysis of Supply Chain Collaboration Techniques By Arun Table of Contents Introduction 3 Supply chain Management and Drivers of supply chain performance 3 Retail Industry supply chain overview 4 Bullwhip Effect 5 Reducing the “Bullwhip Effect” 6 Mitigating Bullwhip Effect by Improving Information Accuracy 7 Collaborative planning, forecasting and replenishment (CPFR) 8 Drawbacks of CPFR 9 Vendor Managed Inventory (VMI) 9 Drawbacks of VMI 10 Mitigating Bullwhip Effect by Improving Operational Performance 10 Vendor consolidation 11 Risk in using 3PL for vendor consolidation 13 Reducing Replenishment Lead time using Cross docking 14 Supplier selection for cross-docking 15 Benefits of Cross-docking 16 Disadvantages of Cross-docking 17 Conclusion 18 Appendix 19 Appendix A 19 Products suitable for cross-docking 19 Types of cross-docking 19 References 21 Introduction A Supply chain consists of all the participants and processes which are involved in satisfying the customer demand. The large amount of participants, variety of processes, dynamics and uncertainty in materials and information flow prove that the supply chain as a complex system in which coordination is considered as a key element for success. The lack of supply chain coordination between the participants results in a “Bullwhip Effect”. This report analyzes different techniques followed by Wal-Mart to improve coordination for reducing the bullwhip effect...
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...Q: 1 Why Integration among three macro processes- CRM, ISCM and SRM is crucial for successful supply chain management? Answer: Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy Internal Supply Chain Management (ISCM) The primary objective is to visualize activity and event spawn during work flow and offers panoramic view of upstream and downstream activities. It constitutes inbound, outbound and production operations, and can be segmented into Raw material, work in process and finished goods with their intrinsic operations. Supplier Relationship Management (SRM) is about developing two-way, mutually beneficial relationships with your most strategic supply partners that deliver greater levels of innovation and competitive advantage than could be achieved...
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...Executive Summery Rajnigandha Melamine Ltd produces melamine tableware as make-to-stock philosophy. It stocks its finished goods inventory in own warehouse sells the products from an outlet. Customers are the end consumers and independent retailers. This distribution network we call ‘manufacturer and retail storage with customer pickup’. Rajnigandha sources its raw materials from China and Taiwan uses independent transport agency for inbound transportation. Raw materials are stored in the factory which minimizes inventory cost. The company focuses on efficiency not on responsiveness. Customers get the facility of same day pickup but not much differentiation. This company’s success depends on how they collaborate with its suppliers and customers. What Kind of Products is Melamine? Functional kind of product. Demand is uncertain. Main rivalry is the ceramic products. Volume of SKUs is high. Demand is same throughout the year except for the Eid-season. 1 Chapter 1 1.1 Introduction Rajnigandha Melamine Ltd was established in 1991 in Chawkbazar, Dhaka. It was first established with a view to produce plastic products. From 2001 they started to produce melamine tableware’s. They produce more than 130 items and more than 1000 models including melamine bowl, plate, condiment dish, serving tray, stewing pot, lunch box and teacup. Company Profile Business Name Business type Year of Established Total Employee Number Business...
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...Green Supply Chain Management Environment Management Project Group Members: Smruti Ranjan Dora F016 Ishan Mittal F036 Deepankar Mukherjee F037 Pratik Nandekar F040 Akash Pandey F044 Kriti Talwar F064 Contents 1. INTRODUCTION ....................................................................................................................................... 3 2. Globalization and Greening the Supply Chain: ....................................................................................... 3 3. Marks and Spencer ................................................................................................................................. 4 3.1 Background ......................................................................................................................................... 4 3.2 Supply Chain Understanding ............................................................................................................... 4 (i) Issues ................................................................................................................................................. 4 3.3 Drivers for GSCM................................................................................................................................. 5 (i) ‘Brand Trust’ ...................................................................................................................................... 5 (ii) Operating Cost........................................................
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... Source: Slack N, Chambers S, Johnston R and Betts A (2009) Operations and Process Management. Operations management is a process of how the organizational activities are carried out efficiently and effectively in order to achieve strategic objectives. It identifies the best practices in performing business activities. Hence it creates value to the organization and its customers. In the context of operations management “Logistic and Supply Chain Management” plays a vital role. Therefore, this report discusses the importance of logistic and supply management and its implications on business activities. It will explain the overall concepts underlining supply chain management and brief the personal opinion on the concepts explained. Finally, it will evaluate the application of the concepts in the practical environment. 3. Introduction to Logistic and Supply Chain Management According to the Council of Supply Chain Management Professionals (CSCMP), a professional association that developed a definition in 2004, Supply Chain Management “encompasses the planning and management of all activities involved in sourcing and procumbent, conversion, and all logistics management...
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...Supply Chain Management Executive Decision The purpose of this business report is to guide the investors on the decisions they should make for designing and organizing their supply chain for their line of power hand tools, including electric drills, saws and sanders. This report will explore the option of using vertical integration as the supply chain strategy and they approach the investors should take towards operations management. Metrics, issues, organizational structure, and cost effectiveness will also be presented in this business report. The investor will have within this report also, the results that provide sustainable dominant competitive advantage to have the right amount of the right product in the right place at the right time. Supply Chain Management Supply Chain Strategy In any manufacturing business the first this to consider is the supply chain strategy that will effectively fit and grow with your business. In researching the right supply chain strategy for your business which is to manufacture and market a line of power hand tools, including electric drills, saws and sanders, the supply chain to be used is vertical integration. Vertical integration is “developing the ability to produce goods or services previously purchased or actually buy a supplier or distributor” (Heizer, Render, 426). Because you the investor choose to own and operate your own production facility and are also considering ownership of any other component of the products...
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...geography involves an inconsistency in global competition. Traditional roles of locations been reduced by the new technology and present competition. Resource, capital, technology, corporate networks weakened the necessity of where the firms should be located. Clusters are geographic essence of interrelated companies, service providers, suppliers, institutions which are not only competing but also cooperate in different business areas in advanced world. (The Competitive Advantage of Nations; Porter, 1990) There are so many theories about cluster but still it is hard to understand the competitive strategy of present global economy. The popularity of cluster diminished the importance of old traditional globalization rather than that it is now using for present dynamic and complex economy which is knowledge based. Cluster change the way of thinking of companies, government and other institutions. For companies cluster suggest the new agendas for management to be more competitive. For example concentrate in Business Environment to lower the cost, trade associations to be more competitive etc. For government cluster suggest new roles in overall economy in different level of the nation. Upgrading the existing cluster by removing the obstacles should be taken as a priority. Cluster also signifies the opportunity of new information flow for the institutions such as universities, colleges, schools etc. which they must follow to be in strong place in the competition of this present economy...
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...ORDER QUALIFYING AND ORDER WINNING Introduction I got a quotation from an Online book store for the first two books we are using in a module. It was costing ZAR 2500, about US$320 at the time. They promised delivery within seven days. This was quite responsive but at a premium considering that I could get the same from ‘Kalahari.com’ for US$ 150. This was however going to take 21 days. Cost effective and efficient but not responsive. I traded off the speed (responsiveness) to cost (effectiveness and efficiency) because I did not have capability (resources) to meet the earlier. I had time in my hands as I only expected to use the volumes after two weeks. This was my strategic fit. Certainly I was a player in this supply chain. I took the email address of the store ‘Kalahari.com’ was using to source this book from the UK and they periodically updated me on the status of the order giving me waybill number and when to expect the book. Qualifiers and Winners Shipping industry plays a major role in supply chain. Major companies like Maersk operate an integrated system where they operate own ships and outsource trucks to deliver containers basically to the client’s door. This sets it apart from ‘the crowd’. Shipping is a very efficient mode of transportation but very slow. Safmarine, a subsidiary of Maesrk, embarked on renewal of fleet. A modern fleet is dynamic (flexible) fast (speed) and reliable (dependable) IMO regulates, through member states, the shipping industry. They...
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...1. Introduction Good Supply Chain Management practices and properly designed Supply Chain Strategy plays a very crucial role in the success of any organization. Supply Chain Managements concept is formed around two nucleus ideas. According to the first idea, nearly all products that make to an end user signify the collective effort of several organizations. Cumulatively, these organizations are referred to as the supply chain. Based on second idea, though supply chains have been in existence for quite a long time now, the majority of the organizations closely monitored to what was taking place in the supply chain within their four walls. A small number of companies understood and managed the entire chain of activities in their supply chain that finally delivered goods to the ending stage of supply chain that is the customer. This resulted in disorganized and repeatedly ineffective supply chains (R. Handfield, 2011). Supply chain management now can be defined as an active management of supply chain activities to maximize consumer value and attain a sustainable competitive advantage. It characterizes a cognizant endeavor by the supply chain companies to build up and run supply chains in the most effective & efficient ways possible. Like any other organization, supply chain also plays a very important role in the airline industry. Currently in the airline industry, various links in the supply chain are in tension leading to minimized profits, heavy losses and in some cases...
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...Introduction Inventory serves as a useful purpose in the supply chain. Many supply chain managers say firms can help decrease the need for inventory by carefully managing factors that cause inventory levels to increase. Inventory can be defined as the result of imbalance between supply and demand. The term inventory drivers comes from the consequences of certain supply or demand characteristics, such as: product desirability, responsiveness, information, collaboration, and visibility (St. John, 2008). The four common inventory drivers are: 1) demand/ capacity mismatches; smoothing inventories 2) demand/ process volume mismatches; cycle stocks 3) demand/supply uncertainty; safety stocks and 4) demand/supply chain lead time mismatches; anticipation inventories (Bozarth, 2011). Determining Inventory Levels Inventory decisions are normally determined by five key business drivers: consumer demand, lead time variability, pack mix, merchandising requirements, and service levels. However, with every decision there is always an area for error. Forecasting consumer demand involves factoring in lead time, lead time variability, and package size constraints. The best way to manage customer demand is to run a sales and operating plan across merchandise, supply chain, and store operations to tweak forecasts and reduce forecast errors. The key is to do a monthly review of forecasts for items with a stable demand, and for items with unstable demand and promoted categories they need a more...
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...The determinants and Challenges in Supply Chain of Pharmaceuticals in South West Region Contents The determinants and Challenges in Supply Chain of Pharmaceuticals Fund and Supply Agency (PFSA) 1 Jimma Hub to Supply Quality Assured Essential pharmaceuticals to Health Facilities in South West Region 1 !Unexpected End of Formula 1. Introduction 2 1.1. Statement of the Problem 3 1.2. Study goal, objectives and indicators 3 1.2.1. Goal 3 1.2.2. Objective & Indicators 3 1.3. Hypothesis 4 1.4. Significance of the Study 4 1.5. Scope of the Study 5 2. Literature Review 5 2.1. TODAY'S CHALLENGES 6 2.2. Supply Chain Pain Points 6 2.2.1. Lack of Visibility, Particularly Upstream 6 2.2.2. Alignment with Third-Party Service Providers 7 2.2.3. Supply Chain Traceability 7 3. Methodology 8 3.1. Sources of Data 8 3.2. Method of Sampling Technique 8 3.3. Method of Data Collection 8 3.4. Study Population 8 3.5. Plan of Action 9 3.6. Management Plan 9 4. Conclusion 10 5. References 11 Abstract The Pharmaceuticals Fund and Supply Agency is focusing on supplying 100% Essential Medicines to public health facilities. The focus stems from the increasing health problem of the public that the health facilities should address accordingly. The objective of this study is, therefore, to identify challenges in supply chain of pharmaceuticals and determining factors that contribute to these challenges at PFSA Jimma hub. The study will use both an observational...
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